About FURNIWEB Company

We are a long-established manufacturer of elastic textiles and webbing in Malaysia and Vietnam. We were founded in 1987 as a manufacturer of elastic wrapping yarn and furniture webbing. Since then, we have further expanded our product portfolio with our weaving and weaving expertise in manufacturing elastic textiles and webbing products. Therefore, we added narrow elastic webbing and seat belt webbing as our main products from 1989 to 2002. Sales of these products account for a significant share of our earnings during the performance period. Our core competitive advantage comes from (among others) our large production capacity and diverse product portfolio, which allows us to meet various customer requirements for order volume and product categories and specifications. Our operating scale is evidenced by the relative revenue scale of several major products, and we all ranked first in terms of market share in fiscal year 2015. During the performance period, we manufactured and sold (i) elastic textiles, including elastic wrappers and narrow elastic webbing; (ii) webbing, including furniture webbing and seat belt webbing; and (iii) other products, including rubber belts and metal components for furniture. Most of our products have the characteristics of elasticity or high tensile strength, and can be used as raw materials or parts for many end products. Our elastic textile products are mainly used for gloves, bandages and intimate clothing; our webbing products are mainly used for furniture and car seat belts. Elastic textiles and webbing products accounted for over 84.0% of our revenue in FY2015 and FY2016. We have over 500 customers during our track record, mostly manufacturers of these end products, including several branded product manufacturers or their contractors. We also manufacture other products, mainly rubber belts for medical consumables and household items; and metal components for furniture, as some of our elastic textile and ribbon customers also need such products. Together, these other products accounted for less than 16.0% of revenue during the performance period. During our track record, our products have been exported to more than 30 countries, including the United States, the United Kingdom, India, Indonesia, Australia, Sri Lanka and Pakistan. In FY2015 and FY2016, export sales accounted for 55.9% and 53.9% of revenue respectively. Thanks to global economic growth, increased personal income, urbanization in developing countries, and increased awareness of industrial safety, it is expected that global demand for clothing, personal clothing, gloves, furniture, and automobiles will continue to increase, which is expected to drive demand for our main products. As a result, global demand for most of our major products will continue to grow from 2015 to 2020. On the other hand, more and more manufacturers are attracted by Vietnam's low costs (such as labor costs) and favorable tax environment, and tend to establish production bases in Vietnam. Most of the end products produced by these manufacturers, such as clothing, personal clothing, and furniture, are exported overseas to meet global demand. Production activities in Vietnam are becoming more frequent, thus driving up the compound annual growth rate of domestic demand for our major products to a level greater than the global average from 2015 to 2020. Similarly, Malaysia's manufacturing industry is expected to benefit more from its low-cost environment than rival countries such as Japan and China, leading to increasing demand for elastic textiles and webbing products. Based on past growth during the performance period, the directors are confident that we will be able to grasp the growth trend of these markets and continue to expand our business in the future.